Start learning →

What does absorption costing add into the cost of a unit of product or service?

AOnly variable cost
BFair share of overhead
COnly selling profit
DOnly direct labour
Answer & Solution
Correct answer: B. Fair share of overhead
Absorption costing loads a fair share of overheads onto each unit so the full cost is shown.
Practise this question with Quill — CA Inter →

Keep practising Total Absorption Costing

Browse all Total Absorption Costing questions for CA Inter, or explore more Cost and Management Accounting topics.

Start a Total Absorption Costing lesson →
Related questions